NBR Simplifies VAT Rules for Deemed Exports to Boost Local Suppliers

• NBR introduced five new preconditions for VAT exemptions on deemed exports to simplify the process for local suppliers and boost exports
• Deemed exports involve supplying goods or services to export oriented industries or export processing zones within the country
• New requirements include transactions in foreign currency, back to back letters of credit, bonded warehouse operations, and proper recording in Utilisation Declaration or Permission documents
• The move aims to prevent double taxation and simplify operations for sectors like garments, leather, and manufacturing that depend on deemed exports
• Industry officials welcomed the clarification saying it removes complications and encourages local suppliers to sell to exporters without procedural hurdles

Source: thedailystar.net

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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